Cryptocurrency might be the best chance our generation has at financial freedom. This is how to get there.

Research Everything

The first thing you need to do is market research. There’s no clear-cut way to do this. But you can start with white papers of large projects, Reddit, blog posts from dev teams, etc. I would also pay attention to price history. There are patterns if you look hard enough but most importantly, you need to simply understand the risk here. There are no guarantees. This is the wild west of finance and tech the entire market could go up 100% next week. Or the entire thing could crash. Nobody really knows. Everyone’s just figuring it out as we go along.
One solid project

Throughout your research, you’re gonna find many different projects that promise amazing returns. Don’t fall victim to these shiny traps.You only need one. Look, unless you’re planning on being the warren Buffett of Crypto, you can do just fine with a single project, and if you’ve done good research, the project is going to be one that will stick around for a long time that’s the important thing. Will this project continue to exist during a bear market? The truth is, most projects disappear after the market crash, and as long as your crypto continues to exist, it will see these crazy spikes and dips in price.

Your Initial Investment

You need to have a good sized initial investment. I recommend creating an entirely new savings account, and putting a few dollars in every month when you can, it won’t feel like much at first, but you can get to a good amount saved up in no time you want to have between $5k and $20k anything smaller than this and you probably won’t make enough later on. But this number is totally up to you. Whatever you are capable of risking, use your best judgment, for most people, this is a realistic amount of money to save. Not that it will be easy, but it will be possible.

Buy the Bottom

As of writing this article, cryptocurrency is booming. Prices continue to rise, and everyone is euphoric, but this too shall pass, there will be another crash. I can’t tell you when or how bad it will be. But it’s coming some people see a crypto crash as a tragedy. It’s going to be your opportunity for financial freedom, this is when you’re going to go all in. You’re going to buy the bottom.

Not the exact bottom. It’s impossible to know how low it will go. You shouldn’t stress about that. But if the project is down 95%, you can rest assured that you’re close enough.

In the long run, it won’t matter if you buy it and it goes down another 10% or 20%. It won’t make a difference during the next bull run.

Stand Firm and HODL

This is going to be the hardest part right here. You need to hold a large percentage of your net worth in an asset that’s going down or sideways. The most important thing you need to do is fight your emotions. Don’t panic sell if it goes down another 5%. Remember the plan! In fact, it might be a good idea to stop checking the numbers on a regular basis. Limit yourself to checking the price once a week that will do wonders for your mental health.

Exit strategy

Now that you’ve gotten to this point, you need to realistically think about your exit strategy. At what price are you going to sell everything?

Then, analyze the previous all-time-high of your cryptocurrency project. The next all-time high will probably be 1x or 2x.

For example, if you had done this after the 2018 crash, you would’ve bought Bitcoin at $3k and sold somewhere between $40k and $60k 1x or 2x higher than the previous all-time-high is a realistic expectation.

But going higher means you might not hit your price target. Remember, Bitcoin peaked at $64k this cycle. So if you’d been hoping for a 4x from the previous all-time-high, you’d have made a big mistake.

Make your Crypto Work for you

DeFi is a revolution and a blessing thanks to crypto innovators, you can earn interest on your cryptocurrency. Regardless of the USD price, you’ll continue to earn more crypto most reputable projects pay you between 6% and 12% annual interest.

I personally use Celsius, and I couldn’t recommend them more. Especially because they pay interest on my favorite cryptocurrency there are plenty of other projects to choose from. But you’ll have to do your own research on which ones you can trust.

You should absolutely earn interest on your crypto though. There’s no reason not to. And depending on when the next bull market comes around, it could make a big difference in your portfolio size.

The Bulls are Here!

When the bull market comes, you’re going to feel euphoric. You’re going to look at your portfolio every single day and see it go up. Trust me, I’ve been there but now your biggest enemy is your own greed.

There’s gonna be a voice in the back of your head telling you to hold your crypto and see where it goes.

I don’t care what the banks are saying about crypto. I don’t care what celebrity is buying it. There will be a crash. And your goal from this point on is to get the money and run if your crypto project is up 2x from the previous all-time-high, look into selling. Get ready for it. Stick to the plan, this is where most retail investors screw up. They think it’s going to go up to infinity. It will not stick with the plan. Stick with the plan. Stick with the plan i can’t emphasize that part enough if you get to this point, you will have sacrificed a lot. And you deserve to reap the reward of your sacrifice. Don’t screw it up take your profits and move on with your life.

Pay Taxes

The first thing you need to figure out is how much you owe in taxes. This isn’t going to be easy. Especially if you’re American but the good news is that if you follow this strategy, it will probably have been more than a year since you bought and sold crypto, this means it will be taxed as long-term capital gains. Which is significantly lower than short term capital gains but honestly, I’m not a tax expert. And you should seek professional advice on this one all I can say is that you should keep your nose clean. The last thing you want is to get audited by the IRS.

Living on Interest

Now that you’ve cashed out, you still want to keep most of your net worth in crypto. Specifically stable coins.You can earn between 6% and 12% interest on stable coins through DeFi projects. Celsius pays 8.88% APY. Treat this as something like a savings account. It will continue to grow. Banks don’t pay enough interest to keep up with inflation. Don’t hold your money there. Earn decent interest in DeFi, from there, you can live off the interest and pull when you need to.

For example :

Let’s imagine going through this. I’m going to use my favorite cryptocurrency, BAT. And mind you — this is rough napkin math here.

Let’s say I saved $10,000 and bought BAT around $0.15 or so, i’ll have 66,666 BAT. I manage to earn another 2000 BAT through DeFi interest making it about 68k BAT then, I sell during the next all time high of $1.64 and make a whopping $111,520. We’ll minus 10% for taxes which brings us down to about $100k then, we can earn 8.88% interest on that with stable coins. Which means we make about $8,880 per year, definitely not enough to live off forever, but enough to take a few years off work.

Depending on your living expenses, this can last you anywhere between 3 and 10 years, and during that time, you can discover your true passions and make a go of your dream career. Maybe that’s becoming an artist. Or a writer. Maybe a YouTuber, trust me when I say, no one wants to sit around and do nothing for the rest of their life.

This is an amount of money that’s both realistic to make in crypto and life-changing, But your crypto journey doesn’t have to end there. There are countless ways Crypto is Powering the Creator Economy And you can always repeat this process with every crypto cycle.

  This plan is easier said than done. But sticking with it can change your life forever. My friend, I hope you can execute this plan. You deserve it.